Question

Which of the following items are considered in Receipt & Payment A/c?

• A. Subscription received
• B. Rent, Electricity, Salary paid
• C. Depreciation
• D. Both A & B

Answer 1

The correct option is B Rent, Electricity, Salary paid

Receipt and payment account records all cash receipts and cash payments during the year whether related to current year, previous year or future year. It records both capital and revenue nature receipts and payments. Depreciation being non-cash item is not recorded in this account. Subscription received, salary, rent, electricity paid is recorded in this account.